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<p>[QUOTE=&quot;NorthKorea, post: 1970793, member: 29643&quot;]I really think you misunderstand the purpose behind the green/greysheets. Why would a dealer pay a premium to an individual collector for an item they can buy from another dealer at &quot;sheets&quot; price? If your seconds are top of population, why are you trying to sell to dealers at a show? You&#039;d be better served consigning them to Great Collections, StacksBowers or Heritage, if they&#039;re high demand pieces. When you approach a dealer to sell, the assumption is that you&#039;re motivated to sell, especially at a show. If you went to an LCS, they might even offer you a fractional amount that&#039;s below &quot;sheets&quot; pricing.</p><p><br /></p><p>Although the &quot;sheets&quot; are intended for dealer-to-dealer transactions, that usually means the highest price a dealer is willing to pay, since there would be multiple dealers willing to sell at that price. If no dealers are willing to transact at a given price, the &quot;sheets&quot; would reflect higher dealer-to-dealer prices.</p><p><br /></p><p>More popular items would command a narrower spread, as there&#039;s a higher chance that the acquiring dealer will be able to sell the item quickly. As items decrease in popularity, the spread would widen, as the liquidating dealer may have been sitting on the inventory for quite some time.</p><p><br /></p><p>Before you say for a fourth time that you&#039;re not a dealer, you&#039;ve already made that clear. Maybe you acquired your collection for full retail (or possibly a premium above full retail through an overzealous auction acquisition), or maybe you bought something that has seen its popularity or demand drop since the time you acquired it. In both scenarios, you&#039;d be very unlikely to recoup your original investment, even selling directly to another collector.</p><p><br /></p><p>Here&#039;s an example:</p><p><br /></p><p>Buying &lt;------------------------------------------&gt; Selling</p><p>Collector(B) / Dealer(SC) Price &gt; Dealer(SD) Price</p><p>Dealer(BD) Price &gt; Dealer(BC) / Collector(S) Price</p><p><br /></p><p>In order for the Dealer to remain a profitable Dealer instead of an unprofitable Collector, they need to aggregate their liquidation prices to exceed their acquisition prices. The most likely way to do this is acquire items at the lowest possible price. Since the dealer knows that they can buy inventory at a given price (sheets ask), they have no reason to exceed that price. For the same reason, since the dealer knows that they can sell inventory at a given price (sheets bid), they have no reason to go below that price.</p><p><br /></p><p>The net result is a collector&#039;s purchase price will always exceed a dealer&#039;s purchase price at any given moment in time, and a dealer&#039;s selling price will always exceed a collector&#039;s selling price at any given moment in time. This is one reason why hobbies are given a non-business classification by the IRS. If hobbies were truly profitable, they&#039;d be businesses. Essentially, the moment that a collector is able to consistently generate a profit through their hobby of choice, they become a dealer by definition in their business of expertise. It works the other way, too. The moment a dealer is able to consistently generate a loss through their business, they become a collector of their chosen hobby. (Yes, there are the 2/5 profitability rules in place, but that&#039;s why I said consistently.)</p><p><br /></p><p>Since you stated that you&#039;re not a dealer, it would behoove any dealer working with you to offer you an amount less than the sheet ask price for your items, since they should be able to acquire (without much exertion) an item of similar quality/rarity for the sheet ask price from a fellow dealer.</p><p><br /></p><p>Say you collect $1 modern notes and pay $5 for an uncirculated 2013 (or whatever the most recent series is) note. You then submit the note for grading and it comes back UNC67 (or whatever letters notes use) from PNG. You&#039;re now $4+grading fees sunk in the note above its intrinsic value. Now, instead of buying your note for your cost plus whatever profit you think you deserve, the dealer could go to a bank and order a $100 stack of $1 notes from the Federal Reserve, then sell the uncirculated notes for $5 each and deposit the others.</p><p><br /></p><p>In the case of buying your note, the dealer needs to wait for someone willing to pay your price plus another 30%-50% markup. By contrast, they could likely make the same profit by selling five or ten $1 uncirculated bills for $5 each.[/QUOTE]</p><p><br /></p>

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